© Reuters. How did risk appetite move today ahead of the release of US inflation data?
Arabictrader.com – Risk appetite among investors continued to recover clearly during Tuesday’s trading, amid the optimism of investors on Wall Street with their anticipation of the release later in the day. The following are the developments in risk appetite on the most prominent assets traded in the markets:
First: Risk Appetite and Stock Markets:
Global stock markets witnessed a significant recovery for the second consecutive session, and most global stock exchanges showed clear profits, ahead of the release of US inflation data today.
European stock indices rose, after investors were optimistic about the official statements yesterday regarding the increase in gas stocks, as well as the positive data for the British labor market today.
At the same time, futures contracts for US stock indices rose during pre-market trading, and completed their earnings march for the second session due to strong corporate profits, but despite this, today’s profits remained limited as investors await the release of US inflation data today.
On the Asian level, Japanese stock indices closed on a clear rise, after the news that the government nominated Kazuo Ueda as the next governor of the Bank of Japan, while Chinese stock indices rose strongly, affected by the recovery of risk appetite in the markets, and the announcement of the authorities in Guangdong Economic Province to set the growth target at 6. %.
Second: Risk Appetite and the US Dollar:
The US dollar witnessed a very negative session, as it was subjected to widespread selling operations, as investors await the release of US inflation data today.
At the same time, the positive British labor market data prompted a strong rise against the dollar, and it also rose against the dollar after the authorities announced an increase in European gas stocks, which increased pressure on the US dollar.
On the other hand, yields witnessed a clear decline during today’s trading, in light of the recovery in risk appetite and distancing from bonds, which are considered a safe haven, especially in light of the anticipation of inflation data, which increased the dollar’s losses.
Third: Appetite for risk and gold:
Gold benefited greatly from the decline witnessed by both the dollar and Treasury bond yields, and investors’ appetite for the yellow metal increased with caution resulting from their anticipation of the release of US inflation data, but despite this, gold profits remained limited in light of the recovery of risk appetite among investors.
Fourth: Appetite for risk and oil:
It witnessed a significant decline during today’s trading, after the news that the US Department of Energy plans to release about 26 million barrels per day of oil.
The impact of risk appetite on currencies and commodities:
Risk appetite and the US dollar: – which measures the performance of the US currency against 6 major currencies – declined by 0.36% to 102.30 points.
Risk appetite and gold: prices rose by 0.33% to $1,859.55 an ounce, while bullion futures contracts fell by 0.26% to $1,868.30 an ounce.
Risk appetite and oil: Crude futures prices fell by 1.11% to reach $85.69 a barrel, and West Texas Intermediate crude prices fell by 1.45% to $78.98 a barrel.
